Investors: Ukio bank's collapse will cost more than of Snoras20.02.2013, 12:06
The breakup of Ukio Bankas will cost more than the Snoras bankruptcy, says the Investors' Association, uniting small-scale market participants. Ukio bank's liabilities exceed the bank's assets by EUR 320 million, reported the Baltic Course with reference to ELTA.
The state company for deposit and investment insurance Indeliu ir Investiciju Draudimas had to grant EUR 1.1 billion in insurance benefits to depositors when Snoras collapsed in 2011. However, the state company expects to recover the money when Snoras' assets get sold out.
Chairman of the Board of the Investors' Association Vytautas Plunksnis says that the main difference between the situations of the two banks is that Snoras was more active in marketing uninsured products such as certificates of deposits and bonds; it also actively cooperated with major state and business clients.